Invesco AimSM Announces Shareholder Approval of Changes to the Structure of AIM Independence Funds
2009-10-29 17:37:02 -
Invesco Aim announced today that shareholders of the AIM Independence Funds have approved changing the funds’ sub-classification from diversified to non-diversified and approved the elimination of a related fundamental investment restriction.
Effective Nov. 4, 2009, the AIM Independence Funds, Invesco Aim’s target-date funds, will be renamed AIM Balanced-Risk Retirement Funds.
The underlying investments will change from a mix of AIM mutual
funds and Invesco PowerShares exchange-traded funds to a combination of the AIM Balanced-Risk Allocation Fund and cash or 100% AIM Balanced-Risk Allocation Fund. In addition, the portfolio management team, glide path and investment objectives and strategies will change. The rebalance strategy will change from annually to monthly.
“By leveraging the asset allocation capabilities of the AIM Balanced-Risk Allocation Fund, we believe the AIM Balanced-Risk Retirement Funds now offer investors in target-date funds a unique combination of potential benefits,” said Philip Taylor, Senior Managing Director of Invesco and Head of Invesco’s North American Retail business, including Invesco Aim.
Invesco’s Global Asset Allocation Group will manage the AIM Balanced-Risk Retirement Funds. The funds’ management team will be led by Scott Wolle, Chief Investment Officer of Invesco’s Global Asset Allocation Group. Mr. Wolle has been with Invesco since 1999 and has 18 years of investment experience. He will be assisted on the funds by portfolio managers Mark Ahnrud, Chris Devine, Scott Hixon and Christian Ulrich, each of whom has more than 13 years of investment experience.
“We believe that one way to maximize long-term wealth is to invest in a strategy that targets consistent returns in any market environment and seeks to avoid the large drawdowns that can result from over-concentration of risk,” Mr. Wolle said.
Relative to traditional balanced funds, Invesco Aim’s new target-date fund structure seeks to provide more consistent returns over time and greater downside protection during challenging markets. The new glide path (the rate at which the asset mix changes as the fund nears the defined target date, indicated by the year in the fund’s name) is designed to meet the retirement savings needs of investors and protect their assets from significant losses which can negatively impact investors’ ability to achieve their retirement goals.
During an investor’s asset accumulation phase, the AIM Balanced-Risk Retirement Funds will invest 100% of their assets in the AIM Balanced-Risk Allocation Fund. Ten years prior to each fund’s target retirement date, each fund will begin transitioning from an accumulation strategy to a capital preservation and real return strategy by reducing the allocation to AIM Balanced-Risk Allocation Fund and adding cash.
Once the fund reaches its target retirement date, the fund’s asset allocation is anticipated to become a static allocation of 60% AIM Balanced-Risk Allocation Fund and 40% in two affiliated money market funds. At the target retirement date, the fund will follow a real return strategy designed to protect against loss of capital, inflation and longevity risk.
The AIM Balanced-Risk Retirement 2010, 2020, 2030, 2040 and 2050 funds are designed for investors whose target retirement date is in or about the year stated in the fund name and the point in which they would stop making new investments in the fund. Consistent with each fund’s final target allocation and its resulting real return and capital preservation objectives, each fund is designed for investors who expect to need all or most of their money in the fund at its target date and for investors who plan to withdraw the value of their account in the fund gradually after retirement, in or about the year stated in the fund name.
Consistent with the AIM Balanced-Risk Retirement Now Fund’s real return and capital preservation objectives, the fund is designed for investors who expect to need all or most of their money in the fund at retirement and for investors who plan to withdraw the value of their account in the fund gradually after retirement.
It’s important to note that investing in any of the AIM Balanced-Risk Retirement Funds does not offer a guarantee of the principal amount invested at any point during the life of the investment.
Risks of Investing in AIM Balanced-Risk Allocation Fund
Derivatives – The fund may use derivatives as a substitute for purchasing the underlying asset or as a hedge in an effort to reduce exposure to risks. Use of derivatives involves risks similar to, as well as risks different from, and possibly greater than, the risks associated with investing directly in securities or more traditional instruments.
Derivatives may also be more difficult to purchase or sell or value than other investments and is subject to counterparty risk – the risk that the other party will not complete the transaction with the fund. A fund investing in a derivative could lose more than the cash amount invested.
Leverage – The fund may use enhanced investment techniques such as leverage. Leveraging entails risks such as magnifying changes in the value (both positive and negative) of the portfolio’s securities.
Interest Rate Risk – Interest rate risk refers to the risk that bond prices generally fall as interest rate rise and vice versa.
Credit Risk – Credit risk is the risk of loss on an investment due to the deterioration of an issuer’s financial health. Such deterioration may lead to the issuer’s inability to honor its contractual obligation, including timely payments of interest and principal.
Foreign & Developing Markets Securities Risk – Foreign and Developing Markets securities have additional risks, including exchange rate changes, political and economic upheaval, relative lack of information, relatively low market liquidity, and the potential lack of strict financial and accounting controls and standards.
Commodity Risk – The fund or the Subsidiary may invest in commodity-linked derivative instruments that may be subject to greater volatility than investments in traditional securities.
Subsidiary Risk – The fund is indirectly exposed to the risks associated with the Subsidiary’s investments. The Subsidiary is not registered under the 1940 Act and may not be subject to all the investor protections under the Act. Accordingly, the fund will not have all the protections offered to investors in registered investment companies.
Currency/Exchange Rate Risk – The fund is subject to currency/exchange rate risk because it may buy or sell currencies other than the U.S.
dollar.
Limited Number of Holdings/Non-Diversification Risk –The value of the fund’s shares may be subject to greater volatility, market, and credit risk. Because a large percentage of the fund’s assets may be invested in a limited number of holdings, a change in value of these holdings could significantly affect the value of your investments in the fund.
Risks of Investing in a Money Market Fund
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
About Invesco Aim
Invesco Aim is dedicated to building solutions for its clients with exceptional products and services through multiple investment management styles and a broad range of investment portfolios – mutual funds, exchange-traded funds, retirement products, separately managed accounts for high-net-worth and institutional investors, annuities, cash management, college savings plans and offshore products. For more information, visit www.invescoaim.com :
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Invesco Aim
SM is a service mark of Invesco Aim Management Group, Inc. Invesco Aim Advisors, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco PowerShares Capital Management LLC are the investment advisors for the products and services represented by Invesco Aim; they each provide investment advisory services to individual and institutional clients and do not sell securities. Please refer to each fund’s prospectus for information on the fund’s subadvisors. Invesco Aim Distributors, Inc. is the U.S.
distributor for the retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for the STIC Global Funds represented by Invesco Aim. All entities are indirect, wholly owned subsidiaries of Invesco Ltd. It is anticipated that on or about the end of the fourth quarter of 2009, Invesco Aim Advisers, Inc., Invesco Aim Capital Management, Inc., Invesco Aim Private Asset Management, Inc. and Invesco Global Asset Management (N.A.), Inc. will be merged into Invesco Institutional (N.A.), Inc., and the consolidated adviser firm will be renamed Invesco Advisers, Inc. Additional information will be posted at www.invescoaim.com :
cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww .. on or about the end of the fourth quarter of 2009.
About Invesco
Invesco is a leading independent global investment management company, dedicated to helping people worldwide build their financial security. By delivering the combined power of our distinctive worldwide investment management capabilities, Invesco provides a comprehensive array of enduring investment solutions for retail, institutional and high-net-worth clients around the world. Operating in 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ.
Additional information is available at www.invesco.com :
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Consider the investment objectives, risks, and charges and expenses carefully before investing. For this and other important information about any AIM fund, please obtain a prospectus from your financial advisor and read it carefully before investing.
Invesco Aim Distributors, Inc.
—Invesco Aim—
Invesco AimDavid Bachert, 713-214-1465
david.bachert@invescoaim.com : mailto:david.bachert@invescoaim.com orIvy
McLemore, 713-214-1904
ivy.mclemore@invescoaim.com : mailto:ivy.mclemore@invescoaim.com
